REVEALED: The Secret Family Ties Between Owners of Nakumatt, Tuskys and Naivas

Three of Kenya's largest retailers – Nakumatt, Tuskys and Naivas – were founded by two families who were also close friends.

Tuskys and Naivas were founded by two brothers, Joram Kamau and Peter Mukuha Kago in 1990 and 1998 respectively.

The Nakumatt chain of supermarkets was founded in 1947 by Mangalal Shah who was a close friend to John Kago Kamau, the firstborn son of the Tusky's founder.

Interactions and friendships between the families all begun in Nakuru County where the Shah's and the Kamau's were humble businessmen over 30 years ago.

Mangalal Shah was running Nakuru Mattresses (today's Nakumatt) across the street from the Tusker Mattresses (now Tuskys) owned by the Kamaus.

John Kamau cultivated a good relationship with Mangalal and they agreed that Mr Shah would supply Tusker Mattresses with certain goods that were nearing expiry on generous credit terms, which Kamau would then sell at very low prices.

The partnership led to the exponential growth of the Tusker brand and it was then moved to Nairobi's OTC area and Peter Kago took over the Nakuru premises to start the Naivasha Self Service Stores (now Naivas).

In a twist of fate, Tuskys has now come to the aid of dwindling Nakumatt in a merger deal that could see the two long-term rivals become one.

Read More: New Twist Emerges on Nakumatt and Tuskys Merger Deal

Naivas is now majority-owned by a South African retailer linked to America's Walmart, with Peter Kago's children still holding stakes in the company.

Tuskys is completely owned by the heirs of Mr Joram Kamau, his five sons and two daughters (deceased), and managed by a non-family member, CEO Daniel Githua.

The agreement to hire a non-family member was reached after a fierce court battle among the brothers that threatened to collapse the retail giant.

Nakumatt remained a family business run by Mangalal's son, Atul Shah, and is now on the brink of dissolution after months of serious debts, currently at Sh30 Billion.

Read More: Nakumatt Supermarket in Trouble After New Government Announcement